ChainLink is a platform which attempts to bridge the gap between smart contracts on the blockchain and real-world applications, which often tend to be off the blockchain. The cryptocurrency uses “oracles”, which find and verify real-world data and bring it on-chain to be integrated into smart contracts.
A month ago, Timothy Peterson, a crypto analyst and an Investment Manager at Cane Island Alternative Advisors said Chainlink was just getting started and thought price would get to $8 by the end of the year. This past week, Link got has high as $20.79 before pulling back.
The new thing in the crypto world is de-fi. We have seen a boat load of money pour into these de-fi coins in the last couple of months. And it makes since. People who are sitting on Bitcoin, Ethereum, etc. now have an alternative means to make some money while they HODL their crypto portfolio.
Far more fascinating are the capital flows into the semi-autonomous lending and trading systems being built atop the Ethereum and other blockchains under the rubric of “decentralized finance,” or DeFi.
Soaring token prices for projects like Aave, Chainlink, Compound and Curve, not to mention good-luck-explaining-this-to-your-friends outliers like Yam and Spaghetti, have indeed attracted capital, at least for stretches. According to DeFi pulse, total value socked away into the platforms has jumped 10-fold this year to $7 billion.
Traders are even are putting their bitcoins into DeFi platforms to take advantage of the higher yields in the fast-growing arena. Since the start of the year, the number of bitcoin locked in DeFi has grown 34-fold to about 49,000.
Ethereum is the top decentralized finance (DeFi) applications. A July report from Dapp.com estimated that DeFi applications accounted for over 97% of all Dapp volume on Ethereum, the largest portion being lending dApps.
Top defi projects on Ethereum are MakerDAO, Dai, Synthetix, Compound, among others. Some of these projects have now integrated Chainlink’s oracles. ChainLink was once a under the radar company a year ago, but things have quickly changed. It’s why I made my first purchase today.
Yes, I should of bought yesterday, when price hit my daily demand at $12.50,
but many are saying price could hit triple digits in the not to distance future. What do you think, we will see $100 Link in the future or will this be the next bull market, followed by a melt down?
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.